Annual Report and Accounts - Hemscott IR

Our Strategy
The statements of Mission, Vision, and Values on
page 6 of this annual report set out what we exist to do,
the direction we aim to take the Group, and the way in
which we believe we should work. The strategy we are
following to achieve these aims is designed to maximise,
over the long-term, shareholder returns through
innovation, organic self-help initiatives and targeted
expansion. It involves:
• Creation, acquisition and development of businesses
that seek to serve all the segments for the distribution
of building materials in the UK;
• Continuously improving the customer and supplier
proposition in all our businesses to become the
highest rated in each segment, as measured by
customers, and as tested by seeking to outperform
markets on a like-for-like basis;
• Exploit the economies of scale this creates through
the centralisation of common activities and common
purchasing into low cost, highly efficient and powerful
central functions;
• Sustaining an organisational model that devolves
authority to operating managers and allows them
to compete with the most effective competitors with
minimal constraints, but always maintaining very
strong controls;
• Operating a performance management system,
closely matched to arrangements for incentives, that
encourages the right economic behaviour and allows
all colleagues to participate in the financial success of
the Group;
• Recruiting and developing people whose personal
characteristics are consistent with a culture of
customer sensitivity, continuous improvement and a
drive for performance;
• Cautiously, with a low-risk and low-capital approach
that does not adversely affect profits and debt
reduction, exploring the prospects for expansion in
new markets.
Management, at Executive Director, Executive
Committee, Division and individual business levels, are
held to account on both current performance and the
delivery of improved capabilities on each of these aspects
of strategy via a balanced scorecard. This scorecard
forms part of the metrics for incentives for Executive
Directors and the Executive Committee. The balance of
measures is designed to ensure that management are
focussed on both current performance and the long-term
improvement and quality of the Group.
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